Sen. Jim Banks Introduces Bill to Ban Pension Investments in Adversarial Countries

WASHINGTON, March 11 -- Sen. Jim Banks, R-Indiana, issued the following news release:

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Sen. Jim Banks Introduces Bill to Ban Pension Investments in Adversarial Countries

WASHINGTON, D.C. - Today, Senator Jim Banks (R-Ind.) introduced the Protecting Americans' Retirement Savings Act. The bill prohibits ERISA-covered retirement plans from investing in companies based in foreign adversary countries, including China, Russia, North Korea, and Iran. It aligns with President Trump's "America First Investment Policy" executive order, which restores the highest standards to reduce pension investments foreign adversary companies. Rep. John Moolenaar (MI-02) is leading the companion bill in the House.

Senator Jim Banks (R-Ind.) "Many Americans' retirement plans wrongly fund the militaries of our adversaries or foreign companies that aid in human rights abuses. My bill would prevent these misguided investments and guarantee that Wall Street execs aren't bankrolling our adversaries with the retirement funds of hardworking Americans."

Rep. John Moolenaar (MI-02): "Today, alongside my colleague Senator Banks, I'm proud to introduce legislation that will protect American retirement savings from being invested in companies tied to China. I've seen firsthand the risks posed by Chinese entities infiltrating our financial systems. This bill is part of our ongoing efforts, in alignment with the Trump Administration's policies, to protect U.S. economic and national security from foreign adversaries."

Key provisions of the Protecting Americans' Retirement Savings Act are:

* Restricts Transactions with Foreign Adversaries - Prohibits ERISA-covered retirement plan managers from acquiring interests in, lending to, transacting with, or sharing plan data with companies controlled by foreign adversaries.

- Applies only to future investments; existing investments and contracts are not affected.

* Mandates Fiduciary Disclosures - ERISA plan fiduciaries must report:

- All assets invested in sanctioned entities, including their identities and reasons for sanctions.

- The total value of investments in foreign adversary companies.

- A detailed list of specific investments in these companies.

- Justifications for retaining such investments in retirement plans

Full bill text can be found here.

Background:

In 2023, then-Rep. Banks introduced the Protecting Americans' Retirement Savings Act in the House of Representatives.

Retirement Accounts Covered by ERISA:

* 401(k) plans

* Employer-provided pensions

* Deferred-compensation plans

* Profit-sharing plans

Read more on the Protecting Americans' Retirement Savings Act here.

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Original text here: https://www.banks.senate.gov/press-releases/sen-jim-banks-introduces-bill-to-ban-pension-investments-in-adversarial-countries/